Localism Bill change delivers savings on pub right to buy scheme

By Ewan Turney

- Last updated on GMT

Related tags: Pub association chief, House of lords, Pub association

For sale: Lease assignments will not trigger the community right to buy
For sale: Lease assignments will not trigger the community right to buy
Pubs being sold as a going concern will not be subjected to long delays via the Community Right to Buy scheme due to come into force as part of the Localism Bill.

Trade bodies had raised concern that lease assignments or the sale of the freehold, where the site would remain as a pub, would be subjected to long delays under the scheme costing the pub industry millions of pounds.

But an alteration has now been made to the Bill in the House of Lords, which effectively means that if a pub is to remain as a pub after the sale, the community right to buy would not be triggered.

The Localism Bill allows community groups to nominate an asset to be listed with the local authority, and would then have a window of opportunity to organise a bid if the asset was to be sold.

“This is a breakthrough which shows that the Government has listened to our concerns,” said British Beer and Pub Association chief executive Brigid Simmonds.

“We have been pressing for months for changes that would allow legitimate, business-to-business sales of pubs to go ahead, keeping them outside the scope of the community-right-to-buy system.

“This change removes the potential for huge uncertainty and delays under the original plans. This would have cost the pub trade millions of pounds, with no benefit to the local community. It’s a good result.”

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